Petronas Chemicals and Leaf Malaysia Enter into MOU for Biorefinery Offtake
Petronas Chemicals Group (PCG) and Leaf Malaysia have entered into a non-binding Memorandum of Understanding (MOU) in relation to Leaf’s proposed biorefinery project in Malaysia.
The MOU provides for, among other things, a study of chemical markets and commercially ready bio-technologies. Subject to satisfactory findings in the study and the approval of PCG, the parties may pursue an offtake agreement for the fermentable sugars produced at the proposed Leaf facility in Segamat Johor Malaysia on terms mutually agreed by the parties and consistent with global project finance standards.
Leaf Resources Managing Director, Ken Richards, welcomed the signing of the MOU, saying it is a good indication of the growing interest in the evolving renewable chemicals Industry.
PCG is the leading integrated chemicals producer in Malaysia and one of the largest in South East Asia. It operates a number of production sites, which are fully vertically integrated from feedstock to downstream end-products. With a total combined production capacity of over 12 million metric tons per year, it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol and other basic chemicals and derivative products.
Leaf Resources is one of the world's leading companies in converting plant biomass into industrial sugars. The company's proprietary process for converting biomass to functional industrial sugars enables plenty of downstream technologies for the production of renewable chemicals that have the potential to substitute petrochemicals used in manufacturing today.